Cohousing-L Mailing List: Re: a slush fund for temporary financial relief

[Liz Ryan Cole (lizryancole]

if people are going to be making contributions to help their neighbors (which 
seems like a fine idea), shouldn’t there be a way to obtain a tax advantage as 
well (to create some sort of charitable fund?)  Has any community done this? 

 liz

Liz Ryan Cole
lizryancole [at] me.com
Pinnacle Cohousing at Loch Lyme Lodge
Lyme, NH
Home 802.785.4124


On Oct 23, 2017, at 9:31 AM, Sharon Villines <sharon [at] sharonvillines.com> 
wrote:


> On Oct 22, 2017, at 4:56 PM, Shawn Barber via Cohousing-L <cohousing-l [at] 
> cohousing.org> wrote:

> After our recent reserve study, we found that our current savings amount does 
> not meet our expected reserve needs. Thus the request to raise dues to fix 
> the problem. Some in our community are on tight budgets, so the topic of a 
> relief fund came up. Our solution was to create a fund that those who can and 
> want to could pay into; knowing that it was going to help a struggling 
> neighbor and keep us meeting the reserve funding goal. The structure of the 
> plan was to continue with the current model of requesting aid from the 
> treasurer, but the fund would be in place so that the person would not be 
> expected to pay shortfalls back. 

The idea of some contributing more works as long as the contributions are 
relatively anonymous or at least not praised. And those receiving do not expect 
the gifts to become permanent. Otherwise you can easily create an environment 
of noblesse oblige. One that is permanent, not just for a crisis.

Private loans between households with the help of the treasurer or the finance 
team, whoever has the mort expertise is one option. It could be up the lender 
to forgive loans. But this way, instead an outright gift to whomever, it is a 
specific private arrangement. This is much less likely to raise feelings of 
obligation or entitlement.

Another option that hasn’t been discussed is to place a lien on the unit for 
skipped or reduced monthly fees so when the unit is sold, the money comes back 
to the community. This amount can include interest and legal fees. A limit 
would have to be placed on the number of units that can do this in what period 
of time. 

If a community can afford to do this, take the fees from the proceeds of the 
ultimate sale, it may be a good way to make affordable units possible.

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org